EMU NL — Capital/Financing Update 2012

May 21, 2012

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ASX Release ASX code: EMU 22 May 2012

2[nd] Floor, 16 Ord St West Perth WA 6005 PO Box 1112 West Perth WA 6872 Telephone 08 9226 4266 Facsimile 08 9485 2840 info@emunickel.com.au www.emunickel.com.au

ABN 50 127 291 927

RE-QUOTATION OF SECURITIES

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Re-quotation of Securities:

The securities of Emu Nickel NL (ASX: EMU ) (the Company or Emu ) will be reinstated for quotation on the ASX, with trading expected to recommence at commencement of trading on Wednesday 23 May 2012.

The following reflects Emu’s current status, activities and plans.

Status of Hillgrove Antimony/Gold Project Transaction:

As announced by the Company on 8 May, the Company’s proposed transaction with Straits Resources Limited (ASX: SRQ) was terminated. A condition of the Sale and Purchase agreement was for Emu to raise sufficient funds for the project to which end Emu lodged a prospectus to raise a minimum of $60M.

Despite the board’s continuing confidence in the Hillgrove asset, the minimum was not raised and, in the board’s opinion, would not have been achieved in a reasonable time frame given the market. Accordingly the raising was abandoned and the agreement between Emu, Straits and ANCOA NL (now named Bullantco NL) terminated.

Status of Mineral Interests:

EMU LAKE (Emu earning 33.3%)

Nickel specialist, Newexco, is reviewing the drilling and geophysical data on the 1,200m-long mineralised contact zones at Binti Gossan and Binti South where high grade nickel sulphide mineralisation has been identified.

The Newexco study is designed to identify locations for contact parallel drill holes which could be used for deep downhole EM surveys to test for massive nickel sulphides on these prospective contacts. This technique has proved successful in discovering significant nickel sulphide resources in Western Australia including Silver Swan (30km west of Emu Lake) and at Flying Fox near Forrestania.

WINDY KNOB (Emu 51%)

The Windy Knob joint venture tenements are situated 55km south of Meekatharra in the Murchison region of WA, adjacent to the Austin volcanogenic massive sulphide (VMS) discovery mode by the Silver Swan Group. A scout aircore drilling programme has been carried out over a 3km-long gold anomaly identified by soil sampling. The

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anomaly is interpreted to be associated with the Federal Bassett shear zone, a known gold-bearing structural zone. This first pass drilling, situated in the northern part of the project area, comprised 40 aircore holes totalling 1,621m. The drilling intersected a sequence of weathered mafic volcanics, sediments and felsic rocks. Sample analysis is in progress.

The Austin VMS Cu-Zn-Ag-Au resource (1.48Mt @ 1.02% Cu, 1.39% Zn, 3.51g/t Ag and 0.24g/t Au) is close to a joint venture tenement boundary and appears to be plunging towards this boundary at depth. Emu is continuing to model available data with a view to possibly deep drilling to test the plunge extension of this mineralisation within the joint venture tenements.

KAMBALDA WEST (Emu 30%)

Mincor Resources completed 23 RAB drill holes south of Nepean, following up a previous RAB drill intercept (NRB 042; 3m @ 2.34g/t Au from 57m). Assaying of samples is in progress. A flora survey was completed over the Woolgangie magnetic anomaly in preparation for RC drilling of this target, interpreted to be a banded iron formation or possibly a magnetite skarn.

MADOONIA DOWNS (Emu 100%)

Permitting is in hand for an RAB/aircore drilling programme to test an ultramafic sequence along strike from the Hootan and Talc Lake nickel sulphide occurrences.

SALMON GUMS (Emu 100%)

Soil sampling is in progress to define the extent of gold-in-soil anomalies identified in the Lake Pyramid area, on the interpreted southern extension of the Tropicana gold trend.

Financial Status:

The Company’s audited financial reports in respect of the full year ended 30 June 2011 and the half-year ended 31 December 2011 have been lodged with ASX. Attachment “A” to this announcement sets out the Company’s current financial status and estimated cash flow forecast to 31 December 2012.

The Company will continue to provide further details in accordance with its reporting requirements.

George Sakalidis

Managing Director

The information in this report that relates to exploration results is based on information compiled or reviewed by George Sakalidis is a director of Emu Nickel NL. Mr Sakalidis has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.

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ATTACHMENT A

ESTIMATED CASH FLOW FORECAST

PERIOD 1 MAY 2012 TO 31 DECEMBER 2012

The following table sets out an anticipated cash flow budget for Emu’s continued operations as a mineral explorer subsequent to the termination of the Hillgrove antimony/gold project acquisition.

Budgeted Source and Use of Funds	Period Ended 31 December 2012 $,000
Opening cash balance 2,895 Interest earned 81
Total funds available	2,976
Corporate non-discretionary costs 88 Corporate discretionary costs 21 Office costs 71 Unallocated directors’ and consultants costs 128 Tenement costs 301
Total funds applied	609
Expected closing cash balance	2,367

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